TATA STEEL LONG PROD Announces Quarterly Results (3QFY21); Net Profit Up 371.3%

Fri, 15 Jan

TATA STEEL LONG PROD has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

TATA STEEL LONG PROD Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	9,993	11,859	13,642	15.0%	36.5%
Other income	Rs m	93	157	358	128.4%	286.1%
Turnover	Rs m	10,086	12,015	13,999	16.5%	38.8%
Expenses	Rs m	9,645	10,023	9,545	-4.8%	-1.0%
Gross profit	Rs m	349	1,836	4,096	123.2%	1075.4%
Depreciation	Rs m	831	786	847	7.7%	1.9%
Interest	Rs m	728	628	568	-9.6%	-22.0%
Profit before tax	Rs m	-1,118	578	3,039	426.0%
Tax	Rs m	4	-13	-5		-207.1%
Profit after tax	Rs m	-1,122	591	3,044	415.5%
Gross profit margin	%	3.5	15.5	30.0
Effective tax rate	%	-0.4	-2.2	-0.1
Net profit margin	%	-11.1	4.9	21.7

Year-on-Year Performance:

• The company's operating income during the quarter grew 36.5% on a year-on-year (YoY) basis. The expenses were down by 1.0% YoY during the same period.
• The company's operating profit increased by 1075.4% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 30.0% in 3QFY21 as against 3.5% in 3QFY20.
• Depreciation charges increased by 1.9% and finance costs declined by 22.0% YoY, respectively.
• Other income increased by 286.1% YoY during the quarter.
• Net profit for the quarter increased by 371.3% YoY. Net profit margins during the quarter increased from -11.1% in 3QFY20 to 21.7% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 15.0% on a quarter-on-quarter (QoQ) basis. The expenses were down by 4.8% QoQ during the same period.
• The company's operating profit increased by 123.2% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 30.0% in 3QFY21 as against 15.5% in 2QFY20.
• Net profit for the quarter increased by 415.5% QoQ, while net profit margins increased from 4.9% in 2QFY20 to 21.7% in 3QFY21.

To see how TATA STEEL LONG PROD has performed over the last eight quarters,please visit here.

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TATA STEEL LONG PROD Share Price Performance

Over the last one year, TATA STEEL LONG PROD share price has moved up from Rs 455.0 to Rs 779.5, registering a Gain of Rs 324.5 or around 71.3%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 12,502.0 (up 0.3%). Over the last one year it has moved up from 10,848.6 to 12,502.0, a gain of 1,653 points (up 15.2%).

Overall, the S&P BSE SENSEX is up 17.9% over the year.

Current Valuations

At the current price of Rs 779.5, the price to earnings (P/E) ratio of TATA STEEL LONG PROD stands at 12.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 1.1 times.